The EU is adopting legislation to regulate ESG rating providers

With the adoption of the EU's Environmental, Social and Governance (ESG) Transparency and Integrity Regulation, the EU has become the first jurisdiction in the world to formally regulate the growing market for ESG ratings. The European Commission published its initial proposal on 13 June 2023, after which the European Parliament and the European Council discussed the scope of the regulation. The final version of the ESGR was issued on 5 February 2024 and was adopted by the European Parliament on 24 April 2024. The ESGR regulates "ESG rating providers" that "operate" within the EU. (Sebastian J. Barling, Simon Toms, more at lexology.com)